Silver Futures Surge to Four-Week High on Global Cues

Silver futures surged to their highest level in nearly four weeks on Wednesday, driven by strong global cues and easing inflation expectations.

The most-active September silver contract rose by Rs 4,545, or 2.05 per cent, to settle at Rs 2,26,160 per kilogram during the trading session.

Market analysts attributed the sharp rise in silver prices to a combination of global economic developments and renewed safe-haven demand, with positive sentiment in overseas markets and expectations that major central banks may continue on a path of monetary easing encouraging investors to increase their exposure to precious metals.

Renisha Chainani, Chief Research Officer at Augmont, said 'Silver prices are trading higher as investors weigh reports of a possible deal to reopen the Strait of Hormuz.'

The Strait of Hormuz serves as a crucial shipping corridor for global crude oil and energy supplies, and news indicating a possible easing of tensions in the region improved investor confidence and contributed to gains across commodity markets.